Correlation Between Schweiter Technologies and Bossard Holding
Can any of the company-specific risk be diversified away by investing in both Schweiter Technologies and Bossard Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Schweiter Technologies and Bossard Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweiter Technologies AG and Bossard Holding AG, you can compare the effects of market volatilities on Schweiter Technologies and Bossard Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Schweiter Technologies with a short position of Bossard Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweiter Technologies and Bossard Holding.
Diversification Opportunities for Schweiter Technologies and Bossard Holding
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Schweiter and Bossard is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Schweiter Technologies AG and Bossard Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bossard Holding AG and Schweiter Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Schweiter Technologies AG are associated (or correlated) with Bossard Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bossard Holding AG has no effect on the direction of Schweiter Technologies i.e., Schweiter Technologies and Bossard Holding go up and down completely randomly.
Pair Corralation between Schweiter Technologies and Bossard Holding
Assuming the 90 days trading horizon Schweiter Technologies AG is expected to generate 2.41 times more return on investment than Bossard Holding. However, Schweiter Technologies is 2.41 times more volatile than Bossard Holding AG. It trades about 0.0 of its potential returns per unit of risk. Bossard Holding AG is currently generating about -0.26 per unit of risk. If you would invest 40,550 in Schweiter Technologies AG on August 30, 2024 and sell it today you would lose (150.00) from holding Schweiter Technologies AG or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schweiter Technologies AG vs. Bossard Holding AG
Performance |
| Timeline |
| Schweiter Technologies |
| Bossard Holding AG |
Schweiter Technologies and Bossard Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweiter Technologies and Bossard Holding
The main advantage of trading using opposite Schweiter Technologies and Bossard Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweiter Technologies position performs unexpectedly, Bossard Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bossard Holding will offset losses from the drop in Bossard Holding's long position.| Schweiter Technologies vs. Inficon Holding | Schweiter Technologies vs. Bucher Industries AG | Schweiter Technologies vs. Sulzer AG | Schweiter Technologies vs. Interroll Holding AG |
| Bossard Holding vs. VAT Group AG | Bossard Holding vs. Bucher Industries AG | Bossard Holding vs. EMS CHEMIE HOLDING AG | Bossard Holding vs. Komax Holding AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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